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According to Santiment’s data, at least for now, Bitcoin’s price dominance has returned. Altcoins were pulling back after a strong month.
The resurgence of Bitcoin’s price dominance may lead to increased confidence among investors who view Bitcoin as a leading cryptocurrency.
Inscriptions began in early 2023 and have generally brought advantages to Bitcoin. Miners now earn a quarter of their income from fees.
Bitcoin dominance has seen a significant increase, attracting attention; How might altcoins be affected? The importance of Bitcoin dominance!
Bitcoin Dominance Reaches New Highs
As Bitcoin’s price continues to rise, it has started to outpace other altcoins, and according to Santiment’s data, at least for now, Bitcoin’s price dominance has returned. Altcoins were pulling back after a strong month.
If people become worried and show fear, we may see rapid price reversals. The crypto market is in a dynamic situation. Bitcoin’s dominance can change and affect altcoin prices. Investors should stay vigilant against changes in market sentiments.
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Bitcoin Dominance VS Altcoins
The resurgence of Bitcoin’s price dominance may lead to increased confidence among investors who view Bitcoin as a leading cryptocurrency. This can attract more interest and investment to Bitcoin, potentially positively impacting its price.
However, its impact on altcoins may be negative, as a shift toward Bitcoin dominance can lead to a relative decrease in the value of altcoins. Additionally, Inscriptions can help give BTC positive momentum.
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Miners Experience Relief
Inscriptions began in early 2023 and have generally brought advantages to Bitcoin. Miners now earn a quarter of their income from fees. Fee transactions around 50 sat/vByte are quite common, indicating that users are willing to pay a bit more for faster transactions. This highlights a positive trend for both miners and users on the Bitcoin network.
The increasing prevalence of inscriptions in 2023 can have a series of positive effects on Bitcoin. Firstly, miners earning a significant portion of their income from fees increases the overall economic sustainability of the Bitcoin network.
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Users being willing to pay higher fees for faster transactions shows increased demand and value associated with timely transaction processing. This can contribute to a stronger and more secure network as users invest in effective transaction processing. At the time of writing, BTC was trading at $36,629, having decreased by 2.9% in the last 24 hours.
